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Direct Labor Variances The following data relate to labor cost for production of 6,500 cellular telephones: Actual: 4,410 hrs. at $13.8 Standard: 4,340 hrs. at

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Direct Labor Variances The following data relate to labor cost for production of 6,500 cellular telephones: Actual: 4,410 hrs. at $13.8 Standard: 4,340 hrs. at $14 a. Determine the direct labor rate variance, direct labor time variance,, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance efficient performance. Thus, b. The employees may have been less-experienced or poorly trained, thereby resulting in a labor rate than planned. The lower level of experience or training may have resulted in the actual time required was than standard

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